HSBC has launched its most ambitious lending package yet for small business owners, making £8bn available to SMEs throughout the United Kingdom.
The scheme is certainly a nationwide one. The £8bn will be dispersed throughout 43 tranches across Britain.
‘‘Too often we’ve heard smaller, domestic businesses ask whether we are as committed to them as we are to big global firms,’’ said Ian Stuart, head of commercial banking at HSBC.
The £8bn is not the only support given to SMEs by HSBC. A special promotion on business loans will be made available to any company.
Usually, SME owners would have to pay a security fee upon qualifying for a loan between £1,000 – £300,000. HSBC will either waive the security fee or refund business owners through to July.
‘‘We want to make it as simple as we can for businesses to take their next step and that’s why we’ve taken out fees and charges. It’s open to any business, although we’re always keen to help out firms that manufacture here, as it’s important to the UK economy,’’ continued Stuart.
The lending firm are currently approving 85 per cent of business lending applications. In 2014, 75,721 SMEs opened an account with HSBC, which is an average of 5,900 small businesses per month.
Also included in the package is 18 months of fee-free business banking for start-ups, and 12 months for existing SMEs who switch banks.
HSBC are also laying the foundations to increase SME growth in the long-term. The banking group are creating more than 300 workshops over the next 12 months, aiming to support 10,000 businesses in seeking to grow from start-ups to established firms looking to grow.
‘‘It’s vital that SMEs across the country, from start-ups and sole traders upwards, know that HSBC is there to support them. We want to be their bank of choice. That’s why we’ve launched our largest ever package of support, with £8 billion available to lend and a promotion designed to make it cheaper and simpler to borrow for your business,’’ said Antonio Simoes, chief executive, HSBC UK.